Re: Sierra vs Nosler... your thoughts
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Grump</div><div class="ubbcode-body">DownZero:
I'm not a bit uncomfortable with Capitalism. In Capitalism, the customers get to vote with their wallets, just as freely as the makers, distributors, and retailers can freely choose their prices.
When supply and demand double copper prices on the commodities markets, and the weight of copper in a box of 100 bullets amounts to not more than a dollar, I get a bit miffed when the "materials cost" is used to justify a $5.00 price increase.
You can pay for the name. I'll pay for performance. Some lower-priced products deliver, some don't.
Last thing I want is some Medicare-style price controls from the idiots in Congress. </div></div>
Sounds like you don't understand the law of demand, and what "market price" means.
Price is not determined by the amount of labor or material that it takes to make a product, and economics has not used this theory for about 150 years. It is a Marxist idea that products are valued by their "labor." Google "labor theory of value" for a deeper explanation.
In a market economy, price is set by the <span style="font-style: italic">willingness </span>and <span style="font-style: italic">ability </span>for economic agents to pay for a product. The change in quantity demanded's relationship to price is called the <span style="font-style: italic">price elasticity of demand</span>.
In your example, if "supply" and "demand" were to double, the price would not change. The market would find a new equilibrium at the same price level.
Expressing disfavor towards "price gouging" is nothing more than a misunderstanding of elementary price theory. A higher price that results in you choosing another product is not due to "price gouging," but simply that a substitute product has attracted your business rather than the one you previously purchased at the former price.
In the case of Sierra vs. Nosler bullets for what we're using them for, the Sierras are <span style="font-style: italic">objectively </span>better. Their bullets are more aerodynamic and thus have better long range performance.
As with anything we buy, we must make a tradeoff between quality and price at some point. I am shooting Sierras right now because the Lapua Scenars are about 15% more expensive than the Sierra 155 grain 2156. It doesn't matter to me why the market price of the Lapua is no longer competitive with Sierra, or whether "price gouging" is happening. All I know is that when I can get the Sierra for $27 and the Lapua goes for $33-40 per hundred, that I'm unwilling to pay the difference in price for a very minimal increase in ballistic performance (.505 vs. .508 bc). In the language of economics, because these goods are near "perfect substitutes," my demand is almost perfectly inelastic when forced to choose between the two.